Almost everything can be done online these days, and banking is no exception.

Many consumers have decided to take their banking digital, and some opt to use banks that exist exclusively online—without a brick-and-mortar location.

“The Internet has become one of the most popular ways for consumers to access their banking services,” says Allison Ross, a senior banking analyst at Bankrate.

According to a 2013 report from the Pew Research Internet Project, 51 percent of U.S. adults—or 61 percent of Internet users—bank on the Internet. Meanwhile, 32 percent of U.S. adults—or 35 percent of cellphone owners—use their phones to log in to online banking.

A sizeable chunk of Americans haven’t even visited a bank branch in recent memory. Three out of 10 U.S. consumers, for example, haven’t visited a bank or credit union branch in at least six months, according to a recent Bankrate report.

While many traditional banks have begun to offer online banking services, there are also online-only banks—also referred to as Internet banks or direct banks—that have digitized the entire banking experience.

With these online-only banks, consumers can monitor their account transactions, transfer money between accounts, pay bills, and manage their spending—all with the click of a button.

Because online-only banks have low overhead costs, consumers tend to see perks in the form of fewer fees as well as higher interest rates on savings and checking accounts.

And consumers are eager to cash in on those perks. According to a 2013 report from TNS Global, deposits at the four largest direct banks have more than doubled over the past five years, a growth rate more than three times the industry average.

To decide if online-only banking is right for you, evaluate your banking needs and whether they align with an online bank’s services. To help you get started, consider the following online bank pro and con list:

Pros of an online-only bank

1. Higher interest rates

In general, online-only banks tend to offer higher interest rates on savings accounts and time deposits compared to their brick-and-mortar counterparts, Ross says.

A MoneyRates.com survey for the fourth quarter of 2013, for example, found that online accounts maintained a “significant advantage” over the rates of traditional branch-based accounts. The average online savings account rate was 0.539 percent, according to the survey, compared with 0.138 percent for traditional savings accounts.

An online-only bank could also offer a higher annual percentage yield (APY) on a checking account than a traditional bank, Ross says, but that will vary based on the bank.

Bankrate.com offers an online tool where consumers can compare interest rates in their area to help them determine if an online-only bank may offer the most competitive rates.

2. Fewer fees

If you have an account with a traditional bank, you may be charged a monthly service fee or a fee for not meeting the minimum balance requirement, among other banking fees.

Typically, Internet banks lack these types of fees, or charge lower fees, which could make them a good option if you only make small deposits into your account and maintain a low balance.

3. Around-the-clock customer service

If you work late into the evening, you may have trouble making it to your local bank before it shuts down for the day. In contrast, many online-only banks offer customer service 24/7, so you don’t have to adjust your schedule in order to speak with a customer service representative.

Cons of an online-only bank

1. Deposit difficulty

With an online-only bank, you lose the ability to walk into your neighborhood branch to deposit a check.

Instead, you may have to mail your check in order for it to be deposited, which could mean a longer wait for the funds to be made available in your account. However, some online-only banks now offer an electronic deposit option, which allows you to take a picture of the front and back of your check and upload it to your account.

If you do use a mobile deposit option, find out whether the online bank has any caps on how much you can deposit electronically, especially if you regularly deposit large checks.

2. Lack of face-to-face assistance

With all of the convenience and ease that online banking may bring, one drawback is the lack of opportunity for in-person communication or problem solving.

“You have to consider whether face-to-face interaction is important to you,” Ross suggests. Also consider your needs for a product such as a safe deposit box.

Some consumers enjoy getting to know the staff at their local branches or like learning about new products and services when they go in for a transaction. Face-to-face interaction with banking staff could be especially beneficial if you need help troubleshooting.

Evaluate your banking and technology situation

When it comes down to it, Ross recommends considering how comfortable you are with technology when deciding if an online bank makes sense for you. If you’re not tech-savvy, you may not be comfortable with the idea of Internet-only banking.

Ross says some consumers also worry about the security of online-only banks, but she notes that security is not an issue as long as you are banking with a reputable, FDIC-insured bank.

“Of course, you would want to use the same precautions as if you were online banking with a different type of bank,” she says. That means creating strong, unique passwords for bank accounts and not logging on to your account over public WiFi, which is not secure and is therefore easier for fraudsters and identity thieves to hack.

Regardless of whether you take your banking online or stick to a bank with brick-and-mortar locations, remember that your financial situation will probably change over time. Make sure you are equipped to manage your finances as they grow.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Media, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/credit/should-i-use-an-online-bank/feed/0Six Team Building Techniques for Your Small Businesshttp://blog.equifax.com/small-business/six-team-building-techniques-for-your-small-business/
http://blog.equifax.com/small-business/six-team-building-techniques-for-your-small-business/#commentsMon, 23 Dec 2013 12:34:17 +0000http://blog.equifax.com/?p=8328You might be able to get your small business off the ground quickly with a clear entrepreneurial vision and exceptional work ethic. However, without commitment and loyalty from your staff, you could fall short of achieving your long-term business goals and never reach cruising altitude.

“Success is really based on how well employees collaborate with each other to meet a common mission or achieve a common vision,” says Barry Moltz, an entrepreneur and business consultant who has authored several books on business advice.

Whether you are piloting a handful of people from a small office space or
a larger group with some staff working remotely, it’s important to understand how to manage your employees and create a strong internal team.

Here are six management techniques that will help you build team spirit at your own company:

1. Hire new employees based on attitude.

Building a strong team can start as early as the hiring process, so it’s essential that you select the right people to add to your company. You can teach skills, but you can’t teach attitude—and it’s nearly impossible to make someone fit in with the rest of the organization.

Before meeting with job candidates, make sure you have a strong sense of your company’s culture and work environment. If you don’t yet have a grasp on the work culture or you think it may have changed since you last hired, Moltz recommends surveying current employees and asking them to write down adjectives that accurately describe the current culture.

You might also consider having potential hires meet your current staff during the interview process to ensure that their attitudes mesh.

2. Be slow to hire.

Even as your business grows and your workforce expands, you still want to maintain collaboration and teamwork among your employees.

To avoid turbulence with existing employees when bringing in new staff, Moltz recommends being slow to hire new employees. This way, you’ll be able to gauge whether new staff members will be productive additions to your organization. You can also minimize friction between existing and new employees by ensuring new hires are properly trained.

3. Encourage collaboration among team members.

It may seem easier to employ a top-down management style, but it could be to your benefit to allow your employees to collaborate with one another. In addition to encouraging project ownership and teamwork, which can lead to better production, this style also means you won’t have to be worried about as many day-to-day tasks.

For example, you can ask individuals working together on a project to define their responsibilities and establish the rules for how they will work with one another, Moltz says.

You can also try empowering your employees by letting those who are closest to the action make decisions, suggests Caron Beesley of the U.S. Small Business Administration.

4. Get your employees involved.

If you are working through a problem, creating a job description for a new hire, or brainstorming new ideas for your business, ask your employees for their thoughts and feedback—but only if you are really interested.

“You have to be sure that if you ask their opinion, you take action on it,” Moltz says. “You can’t just ask their opinion and then ignore it.”

5. Plan fun activities that are not work related.

It doesn’t matter what the activity is, as long as you are bringing your team together for purposes other than work. Whether you’re creating funny videos and putting them on YouTube or getting involved with a nonprofit organization in your community, out-of-work experiences are important for team building.

Just be sure to remember that your employees have lives outside of work. If you are going to do something outside of office hours, Moltz suggests also inviting the spouses or significant others of your employees and planning events that include entire families, like picnics and bring-your-kid-to-work days.

6. Regularly assess your employees, and have them assess themselves.

To better understand the strengths and weaknesses of each person on your team, do a quarterly or biannual evaluation. By regularly meeting with your staff, you’ll create a space for open communication and be able to better integrate people into your team by acknowledging the contributions that they make to your business.

The way you encourage team spirit all comes down to being in tune with your company’s culture and understanding what types of activities are acceptable. But doing something for your staff is important as well.

“What’s proven is that money is only one motivation. Reward is only one motivation,” Moltz says. “What people really want is to know that they are part of a team and that they are being appreciated.”

Joslin Woods is a researcher, writer, and Web producer at Think Glink, Inc., with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/small-business/six-team-building-techniques-for-your-small-business/feed/0New vs. Used Cars: Maintenance Needs to Considerhttp://blog.equifax.com/family-money/new-vs-used-cars-maintenance-needs-to-consider/
http://blog.equifax.com/family-money/new-vs-used-cars-maintenance-needs-to-consider/#commentsMon, 16 Dec 2013 12:44:54 +0000http://blog.equifax.com/?p=8239When you’re car shopping and comparing price tags, buying a used car might initially seem like the best choice. If you buy used instead of new, you’ll be saving money. In addition, by buying used you might be able to afford a nicer model because even cars that are just a year old are usually 20 percent to 30 percent cheaper than those that are brand new.

But hidden costs in the way of maintenance and repairs could offset the competitive price and low monthly payments you are offered on an older, used vehicle—especially if you plan on keeping the car for the long haul.

Maintenance needs can increase over time

No matter what kind of car you drive or how well built it is, certain parts will have to be taken care of throughout the car’s life. According to Consumer Reports, on average, maintenance and repair costs account for 4 percent of total ownership costs over five years.

How much money you dish out for car maintenance, however, will largely depend on the age of your car. In general, a new car is likely to have fewer maintenance issues than an older car, which may have suffered an accident, been mistreated by a previous owner, or simply experienced normal wear and tear.

With a used car, you could encounter immediate or frequent maintenance issues related to your tires, brakes, shocks, clutch, wipers, spark plugs, or fluids.

“These items will all be new on a new car, meaning there will be no concerns over their condition,” says Karl Brauer, senior analyst at Kelley Blue Book.

Also, a used car may no longer be under its factory warranty, or the warranty could be speeding toward its expiration date.

Before deciding whether a new or used car is right for you, consider the following maintenance needs and costs:

1. Tires. When buying a car—especially a used one—you should be aware of the condition and type of the tires, Brauer says. If your car comes with high-quality tires and you treat them with care, they could last up to 80,000 miles. All tires will eventually need replacement, though, and if your used car rides on used tires, that replacement could be in your not-so-distant future.

Many factors will affect how much you pay for new tires, including their brand, quality, and size. Tires that are taller and wider typically cost more. A standard all-weather tire for a sedan or SUV could cost between $100 and $400. If you need a mechanic to install those new tires, your overall cost could rise to anywhere from $600 to $1,000.

2. Brakes. Brakes should last 15,000 to 25,000 miles, but that number can vary widely based on driving conditions, Brauer says. The price tag on replacement brakes can also vary widely, depending on the make and model of the car, the vendor from which you purchase the new parts, and whether the brakes and rotors need replacing or just the brake pads.

Calipers and discs—parts of the brake—may also need replacing, but this generally is needed less often than replacement of the brake pads.

3. Engine. According to Brauer, the engine in a new car will likely be under warranty and, in a used car, should last at least 150,000 miles before needing any major work. If your engine needs replacing, it will likely be the most expensive repair you face—many new engines cost more than $1,000, and some cost more than $9,000.

If a mechanic tells you that your engine needs replacing, make sure to get a second opinion from another reputable mechanic. If your engine already has 150,000 miles on it, it’s likely that other car parts will need replacing too, including your power steering, air conditioner, radiator, and transmission.

4. Timing belts and timing chains. These engine parts may need to be replaced between 75,000 and 100,000 miles, according to Brauer, and their replacement can be expensive. A timing belt replacement can cost more than $200, while hiring a mechanic to replace a timing chain generally costs between $300 and $1,000.

5. Clutch. An automatic car’s transmission should last as long as the engine with no problems. But if you are buying a used car with a manual transmission, Brauer suggests having the clutch checked out by a mechanic before purchasing the car because clutches are expensive to replace and can wear out quickly if not used correctly. Having a clutch replaced can cost anywhere from $400 to $3,000.

6. Fluids. Don’t forget the costs associated with changing your car’s fluids. Fluids in a used car—including the oil, engine coolant, transmission fluid, and even windshield washer fluid—could be in any kind of condition. For cars built within the last five years, coolants and transmission fluids will generally last more than 100,000 miles. “It’s likely those will be fine unless the car has been driven past that number,” Brauer says. Engine oil should be changed regularly no matter how old the car is.

If you are trying to calculate the long-term costs of owning a car, including costs related to maintenance and repairs, check out online cost estimators, such as those offered by Kelley Blue Book and RepairPal. Don’t forget to factor in other costs associated with car ownership, such as those related to insurance and gasoline, as well.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/family-money/new-vs-used-cars-maintenance-needs-to-consider/feed/1Should I Purchase a Pet Insurance Policy?http://blog.equifax.com/insurance/should-i-purchase-a-pet-insurance-policy/
http://blog.equifax.com/insurance/should-i-purchase-a-pet-insurance-policy/#commentsFri, 22 Nov 2013 12:44:40 +0000http://blog.equifax.com/?p=8009For many pet owners, pets are family members deserving of the best care—especially when it comes to their health. That’s why many people consider purchasing an insurance policy in the hopes of saving money on their pets’ health care.

According to a survey of pet owners by the American Pet Products Association, pet owners in the United States spent more than $53 billion on their pets in 2012 and more than $13.5 billion on veterinary bills alone. That’s an average yearly vet bill of $231 for a dog owner and $193 for a cat owner, and it doesn’t take into consideration treatment of major illnesses, surgery, or emergency services.

“Pet owners spend millions of dollars each year in treating common ailments that affect their pets, from skin allergies to upset stomachs, arthritis, and diabetes,” says Loretta Worters, vice president of communications for the Insurance Information Institute and Equifax Finance Blog contributor. “Statistics show that 40 percent of all dogs get cancer in their lives.”

Pet insurance costs are based in part on the pet’s age and breed, as well as whether the pet spends a lot of time outdoors, Worters explains. Insurance companies also take previous medical issues into consideration.

Costs typically range from about $20 to $40 per month, depending on deductibles and level of coverage.

A Consumer Reports analysis of plans from major pet insurance providers found that pet insurance isn’t a great deal for people with healthy pets, but for those who have animals with chronic problems or expensive illnesses, pet insurance can be worth the cost.

Be prepared to pay a deductible. Even if you have pet insurance, you’ll still incur costs if your pet is sick or injured. Worters notes that deductibles typically range from $100 up to $500, depending on the plan.

Be sure you know what’s covered in available plans. Consumer Reports suggests getting a policy that’s easy to understand and that spells everything out. That way, if something arises and the insurance is needed, you can be certain of the costs involved. Some plans only cover a certain percentage of charges from your actual vet bill, while others limit payouts per illness or injury.

Know that pre-existing conditions won’t be covered. According to Worters, most pet insurance plans don’t cover costs associated with illnesses or injuries that occurred before the pet insurance policy was purchased.

Ask your veterinarian about a prepaid health plan. These plans, offered directly by some veterinarians, allow you to pay a set dollar amount to cover specific procedures and vaccinations throughout the year. This may be a good alternative to pet insurance for people with pets that are usually healthy.

Consider setting money aside instead. You could also put money in an account with the intention of keeping it in case something happens to your pet—“sort of a self-insurance,” Worters explains. That way, if you don’t end up needing the money for veterinary care, you can use it on something else.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Media, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/insurance/should-i-purchase-a-pet-insurance-policy/feed/0Four Factors That May Help You Get Auto Insurance Discountshttp://blog.equifax.com/insurance/four-factors-that-may-help-you-get-auto-insurance-discounts/
http://blog.equifax.com/insurance/four-factors-that-may-help-you-get-auto-insurance-discounts/#commentsMon, 02 Sep 2013 12:41:31 +0000http://blog.equifax.com/?p=6913Auto insurance can get expensive, especially if you've had an accident or have young drivers in your household. Fortunately, there are some ways you can save money on insurance policies. Here are four you can look into with your provider.
]]>The cost of driving doesn’t come cheap. When you tack on the price of gas—now at more than $3 per gallon—and auto insurance, it may seem more appealing to commute via horse and buggy.

But if you are shopping around for auto insurance or thinking about updating your current policy, you could save big bucks with a variety of auto insurance discounts—if you know how to find them.

“[Insurance companies] offer all of these discounts, but they are really under no obligation to tell you about them or make sure you are getting all of the insurance discounts you qualify for,” says Doug Whiteman, an insurance analyst at Bankrate.com, which recently surveyed discount information available on the websites of the 10 largest auto insurance companies.

While many of the more well-known auto insurance discounts, like those for safe drivers and for bundling your car and home insurance policies, are conspicuously advertised on company websites, others can be hard to spot.

When Bankrate.com combed through the websites of the leading auto insurance providers, for example, it found that some discounts were only mentioned on question-and-answer pages, and details for others were buried in the comment sections of blog posts.

“We think that it is very possible for people to have no idea about the discounts they may qualify for and all of the ways they can save on their car insurance,” Whiteman says.

While the amount you save from auto insurance discounts will vary based on the insurance company, the state where you live, and your personal circumstances, the deals do add up. Some discounts can knock from 3 percent to an impressive 20 percent off your policy.

Pete Moraga, spokesman for the Insurance Information Network of California, has heard of consumers who have saved up to 50 percent in discounts alone. He says that due in part to discounts, auto insurance consumers in the U.S. have a lot of power when it comes to determining their rates.

Before you select your auto insurance policy or make updates to your current one, consider these four things that may help you get an insurance discount:

1. Low mileage. Some companies, including six of the 10 surveyed by Bankrate.com, will give you a discount if your car doesn’t rack up many miles. You may want to inquire about this discount if your car spends a fair amount of time off the road and in the garage. To get the best mileage-based deal, though, you may need to install an electronic device that logs the miles you drive.

2. Safety features. If your car has certain safety features, like air bags and motorized seat belts, you could shave dollars off of your policy under a discount for “passive restraint,” which was offered by nine of the 10 companies surveyed. If your car is equipped with an anti-theft device—an alarm system or an anti-lock brake system, for example—you could also see some savings coming your way.

3. Teenage drivers. On average, a married couple pays 84 percent more for car insurance after adding a teenage driver to an existing policy, according to a recent report from InsuranceQuotes.com, which is part of Bankrate Insurance.

If you are preparing to add a teen to your policy, look out for the popular “good student” discount, which was offered by all 10 of the insurance companies surveyed. This discount rewards students earning good grades in school with lower insurance rates. Many companies also offer a discount for young drivers who are attending school far from home, usually 100 miles away or more.

If your teen is going to be behind the wheel of a family car, Moraga recommends limiting him or her to the least expensive car to insure, which could also bring down rates.

4. Industry discounts. You may qualify for a discount at some car insurance companies if you belong to a specific affinity group or work in a certain industry. Some companies, for example, give discounts to teachers, engineers, or scientists.

Once you are familiar with the types of discounts offered by car insurance companies, make sure to ask your agent whether you qualify. It’s a good idea to reevaluate your car insurance policy every six months and to keep in regular contact with your insurance company, Whiteman says, so you can let it know about any updates that might lead to discounts.

You might even qualify for some of the more obscure car insurance discounts offered, like those for new parents, non-smokers, married couples, and drivers with daytime running lights.

When you are evaluating a policy, though, remember that discounts aren’t everything. A company that offers few discounts may still have the lowest overall price.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/insurance/four-factors-that-may-help-you-get-auto-insurance-discounts/feed/4Five Tips for Hiring Seasonal Employeeshttp://blog.equifax.com/small-business/five-tips-for-hiring-seasonal-employees/
http://blog.equifax.com/small-business/five-tips-for-hiring-seasonal-employees/#commentsMon, 05 Aug 2013 12:29:58 +0000http://blog.equifax.com/?p=6598If you are expecting increased business this summer, you may be looking to hire seasonal help in order to meet the heightened demand. Before you go on a hiring spree, however, you may want to talk to your small business insurance representative about how seasonal employees might create year-round risk for your small business.

According to claim data released by Travelers in 2011, workers compensation claims at small businesses are at their peak from June through September.

Lower back strains and other back-related injuries, as well as injuries from slips, trips, and falls, are the most common, and workers under the age of 30 account for almost one third of these employees sustaining injuries while on the job.

The need for additional workers during the summer months does contribute to the spike in workers compensation claims for the season, says Judy Coblentz, chief underwriting officer for Travelers’ small commercial division.

Activities tend to pick up once the weather warms up—more people are dining at restaurants, for example—and in some parts of the country, small businesses might only be open for the summer season, Coblentz adds.

While your business gears up for this summer’s demand, consider these five tips as you bring your new seasonal employees on board:

1. Check in with your insurance agent or broker.

Before taking on seasonal staff members, check with your insurance agent or broker to make sure you have the coverage needed to help protect your business.

For example, workers’ compensation laws vary by state, and you might not be required to carry the insurance until you have a certain number of employees. Bringing on summer hires might push you over the threshold and require you to carry the insurance for the first time, Coblentz says.

You may also want to reevaluate your business owners policy (BOP), which covers property and liability, if you plan to have more inventory during the summer months.

2. Train and supervise your seasonal employees.

Set aside enough time to properly train and supervise your new summer hires to help reduce the chance of injury to both new and existing employees. Inexperience, immaturity, or a lack of responsibility on the part of your seasonal hires could lead to losses and increased exposure to all type of insurance claims.

Whether you hire your summer employees early or spend extra time training them in their first few days, “make sure that they actually understand the business, the job that they are going to do, and how to do it properly,” Coblentz says.

First, decide when your summer employees will be needed to manage the peak business. Then, allocate the appropriate amount of time to bring them aboard and train them to handle the increased activity.

Consider assigning more-experienced employees to work alongside the seasonal hires until the newer employees are capable of performing their job duties independently.

3. Determine the level of responsibility your summer hires can take on.

Before divvying up tasks, consider the level of responsibility assigned to your summer employees. Placing a critical task in the hands of a seasonal worker could compromise your business.

4. Teach all employees safe work practices and procedures.

It’s important that you train all of your seasonal workers, regardless of their background, in safe work practices and procedures. Your safety training could include a tutorial on emergency procedures and a review of employee protocol if an accident occurs.

5. Make sure you and your employees have the right auto insurance coverage.

If your seasonal workers will be driving or making deliveries for your business using their own vehicles, you may want to think about purchasing hired and non-owned auto coverage. Hired auto insurance provides liability protection when you drive a vehicle you don’t own. Non-owned auto insurance provides liability protection when an employee occasionally has to drive his or her personal vehicle for business purposes.

If the employees are using your business vehicle, make sure your commercial auto policy has the appropriate limits and coverage. You should also make sure that your employees have insurance coverages on their own vehicles.

Before letting summer workers go out on the road on behalf of your business, Coblentz suggests looking at a “combination of how long someone has been driving and what their record looks like during that time period.”

By adequately preparing for your summer hires and providing them with the necessary training, you can help equip your business to handle the summer rush and limit any possible incidents.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and holds a master’s degree in journalism from Northwestern University.

]]>http://blog.equifax.com/small-business/five-tips-for-hiring-seasonal-employees/feed/0Credit Score Dating: Tips for Snagging Your Financial Soul Matehttp://blog.equifax.com/credit/credit-score-dating-tips-for-snagging-your-financial-soul-mate/
http://blog.equifax.com/credit/credit-score-dating-tips-for-snagging-your-financial-soul-mate/#commentsThu, 01 Aug 2013 12:10:20 +0000http://blog.equifax.com/?p=6563Lenders use your credit score to calculate your risk as a borrower. But potential suitors may use your credit score to calculate their risks, too. Learn how you can give your credit file a makeover and make it more appealing to potential mates.
]]>Lenders use your credit score to predict your risk as a borrower when you are in the market for a new credit card or a loan. But on a few online dating sites, potential suitors have been using credit scores to calculate a different type of risk—the risk of heartbreak.

Online dating sites like creditscoredating.com and datemycreditscore.com have received media attention for the niche services they offer to singles looking for love on the Internet. To be a member of creditscoredating.com, for example, you must post your credit score range. Then you can search for potential dates by their credit scores.

“Too many relationships fall apart because of finances,” says Niem Green, owner of creditscoredating.com, which launched in 2007 and now has more than 10,000 users.

By asking members to select their credit score range (with some members choosing to post the actual score in their profile), the dating site helps its members achieve financial responsibility and compatibility in their relationships, Green says.

Creditscoredating.com works like most other online dating sites. Users sign up and then create profiles with their personal characteristics and interests. However, the site ups the ante by bringing credit scores into the mix.

“We can have a conversation about anything, but as soon as we bring credit into it, you know I’m serious,” Green says, adding that the site caters to singles who are looking for more serious and long-term relationships.

Often, people who have had their credit or financial lives ruined by previous significant others want to be sure off the bat that they’re dealing with someone who’s financially responsible.

“I would like to have at least a ballpark idea of someone’s credit score,” says Ben R., from Phoenix, Ariz. “I might worry if it’s extremely low.”

On the other hand, credit score dating might not be the path to romance for everyone.

“It’s a niche,” says Eric Resnick, the owner and lead dating coach at ProfileHelper, which helps online daters create profiles and communicate with love interests.

“Are there people who want to check into [credit score]? Absolutely,” Resnick says. “There will always be people who need that level of reassurance on who they are dating before they really start meeting.”

Other daters aren’t concerned. Jessica D., a 27-year-old woman from Chicago, says she would not want to know someone’s credit score before starting to date because the information is none of her business.

“People can have bad credit scores for a number of different reasons—it doesn’t always mean they are financially irresponsible,” she says.

If you’re looking for love, now may be a good time to pretty up your credit score for your potential mate. Even if you’re loving the single life, it can’t hurt to get your financial house in order.

Although there is no magic remedy to fix your credit score, consider these five tips to make your credit more attractive to potential mates (and lenders):

1. Pay your bills on time.

Your payment history is one of the factors that helps determine your credit score, so it’s important that you stay on top of your bills. Paying bills in full and on time should reflect positively on your credit history. Remember that one delinquent payment that is 30 days late can remain on your credit report for up to seven years.

2. Pay off debt.

If you have any collections or credit card debt, make a financial plan so you can get it paid off as quickly as possible. The debt-to-available-credit ratio is another factor that impacts your credit score—it’s more positive to have a high ratio of available credit to debt. By paying off some of your current debt, you may open up some of your available credit.

3. Look for new credit opportunities.

You may have a lower credit score if you have a small credit file, meaning that you don’t have much credit or your credit history is short. You don’t want to take on debt you don’t need, but you can build a more positive credit report if you open more lines of credit. Consider opening a retail, gas, or low-interest credit card in order to build a positive credit history.

4. Check your credit report regularly.

It’s important that you regularly check your credit report so you know where you stand. Doing so can help you keep track of any debts that need to be paid down, collections that need to be paid off, or inaccurate information that needs to be corrected. You are entitled to one free credit report each year from each of the three national credit reporting agencies through annualcreditreport.com. To access your credit score, you will need to pay about $9.

5. Correct any errors.

Inaccuracies in your credit report, such as if a credit company has not correctly reported your payments, could impact your credit score. If you spot an error when reviewing your credit report, you can dispute the error with the credit reporting agency. At Equifax, you can file a dispute online, by mail, or by phone. You can also directly contact the creditor involved with the error to resolve the dispute.

Cleaning up your credit file will take a little work, but following these tips may help you snag the mate—or the credit score—of your dreams.

What about you: When do you want to know your future mate’s credit history?

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and holds a master’s degree in journalism from Northwestern University.

]]>http://blog.equifax.com/credit/credit-score-dating-tips-for-snagging-your-financial-soul-mate/feed/5Four Questions Before Purchasing a Travel Insurance Policyhttp://blog.equifax.com/insurance/four-questions-before-purchasing-a-travel-insurance-policy/
http://blog.equifax.com/insurance/four-questions-before-purchasing-a-travel-insurance-policy/#commentsWed, 10 Jul 2013 12:03:51 +0000http://blog.equifax.com/?p=5070Nothing ruins a vacation more than a delayed flight, lost luggage or a medical emergency. If you’re considering purchasing a travel insurance policy to protect your non-refundable expenses in the event something goes wrong, be sure to ask some questions first.
]]>Before finalizing your travel plans and dishing out the dough for the perfect getaway, you might want to consider a travel insurance policy to protect your prepaid, nonrefundable expenses. While your vacation will hopefully be restful, remember that flights can be delayed, tours can be cancelled, family members can get sick, and luggage can go missing.

A package insurance policy—sometimes called trip insurance or a trip plan—usually features the most coverage in a single plan by bundling multiple types of coverage into one. This often includes coverage for cancelled or interrupted trips, medical emergencies, emergency evacuations, and lost luggage.

“[A package insurance policy] is a full suite of coverage, and that’s the most common,” says Jim Grace, CEO of insuremytrip.com, which acts as an insurance agent. “Many of the other areas of coverage or types of policies are monolithic and focus on specific coverage.”

Travel insurance typically costs between 5 percent and 8 percent of the insured trip, depending on factors like the type of plan and age of the traveler.

Whether you are shopping for a package policy, a travel medical plan, or a specialty policy designed for adventure travelers, ask yourself these four questions to help you with your purchasing decisions.

1. Is there a chance you might have to cancel your trip?

Whether you are staying within the country or traveling abroad this spring, ask yourself if there is any chance you might have to cancel your trip, especially if you are considering a package policy.

The cancellation coverage is usually what makes a package policy more costly than other plans, says Damian Tysdal, founder of Travel Insurance Review, an online travel insurance resource. But, he adds, extensive cancellation coverage is difficult to find anywhere else.

If you have to cancel your trip because of a weather disruption, a family member getting sick last minute, or an emergency at work, for example, your travel insurance could cover the lost costs.

2. Are you paying for travel activities in advance?

When considering the risk of canceling your trip, also think about how much money you will be paying before you even depart—for cruises, airfare, hotels, or organized tours, for example.

“Cruises and tours are notorious for bad cancellation policies,” Tysdal says. “At least with most airlines you can rebook the flight for a fee so there is some recourse there. With cruises, if you cancel anywhere within a month, I think you are losing at least 75 percent of the cost.”

On the other hand, if you are taking a spontaneous trip with minimal prepaid costs—such as if you are only paying for airfare—you may feel that you can absorb the cancellation risk on your own.

3. Are you traveling outside of the U.S.?

If you are traveling to an overseas destination, consider your medical coverage. Not all medical insurance plans provide worldwide coverage, according to Grace. Plus, if you are out of network for your policy, you could be faced with a large deductible. It’s important to note that Medicare recipients receive no international medical coverage.

Companies that provide travel insurance have networks of doctors and hospitals pre-screened around the world so they are equipped to manage your care abroad. If you are hurt overseas, medical evacuation coverage will take you to the nearest appropriate hospital to receive treatment or bring you home.

4. Is your trip covered through other types of insurance?

Some credit cards come with travel insurance as an added feature, but it may have a low annual limit. Check with your credit card company to see if the insurance provided meets your spring break needs.

If you are traveling domestically, your health insurance should have you covered most of the time, but make sure to familiarize yourself with your out-of-network deductibles.

Instead of coverage for lost luggage, your homeowners or renters insurance may cover off-premise theft, but again, check into the amount of the deductible. You may have to list specific items on your policy in order for them to be covered.

]]>http://blog.equifax.com/insurance/four-questions-before-purchasing-a-travel-insurance-policy/feed/6Saving Money Remains a Challenge for Struggling Americanshttp://blog.equifax.com/credit/saving-money-remains-a-challenge-for-struggling-americans/
http://blog.equifax.com/credit/saving-money-remains-a-challenge-for-struggling-americans/#commentsMon, 08 Jul 2013 11:40:00 +0000http://blog.equifax.com/?p=6332The average U.S. household stayed out of financial distress in the year’s first quarter, but only barely. Consumers’ strained household budgets curbed financial progress, according to the most recent findings from the CredAbility Consumer Distress Index.

The Index monitors the financial condition of the average U.S. household by measuring employment, housing, credit, how families manage household budgets, and net worth. In the first quarter, U.S. households scored 70.7 on the Index’s 100-point scale, where a score below 70 marks a state of financial distress.

Gains in employment, housing, credit, and net worth were enough to keep the average household afloat, but plummeting household savings and a sinking consumer sentiment index restrained budgets more than three years into the economic recovery.

While the most recent score was down 1.1 point from the last quarter of 2012, the index has moved up and down the past four quarters, resulting in a net gain of less than one point.

Credit is under control

“The average household is positioned to improve financially,” says Scott Scredon, director of public relations at CredAbility, “and that’s because employment is rising, housing values are rising, and mortgage delinquency rates are falling—and at the same time, people have their credit under control.”

The Index’s credit category, which Scredon calls the “shining star” in terms of consumer behavior over the last few years, topped 90 for the first time in 24 years.

“Credit card delinquencies are very low compared to historic levels, and bankruptcies are falling,” Scredon says. “People have done a good job of keeping their spending under control and paying back any credit they borrow.”

Saving money is a challenge

Despite keeping their spending under control, consumers seem to be having trouble saving money. The net worth category, measured by home value, stock market holdings, and personal savings, is well below 70, but it has reached its highest point since the financial crisis hit, with a five-point gain in more than four years.

However, the three indicators that make up the household budget category—the amount of money consumers save after they pay their bills, the amount of money consumers have available for emergency savings, and the consumer sentiment index—dropped rather significantly from the fourth quarter of 2012 to the first quarter of 2013.

The Social Security tax hike in January could have impacted household savings by reducing disposable income and the amount of money available to save, says Scredon.

He adds, “We are hoping that after the end of each month, people will save about 7 percent of their household income after they have paid all of their bills. Unfortunately, the savings after the end of the first quarter were close to 2 percent.”

Budgets are unstable

Of the five categories that make up the Index, the household budget category is the most volatile, according to Scredon, as it is affected by factors like gas and food prices.

The household budget category is also counter-cyclical. When times are tough, consumers tend to tighten their purse strings, and when the economy improves, consumers tend to get looser with their spending.

As consumers gear up for the summer, Scredon recommends carefully managing travel plans, particularly while gas prices are expected to rise, and being mindful of discretionary spending.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.

]]>http://blog.equifax.com/credit/saving-money-remains-a-challenge-for-struggling-americans/feed/0Accepting Credit Cards? 5 Tips for Small Business Ownershttp://blog.equifax.com/small-business/accepting-credit-cards-5-tips-for-small-business-owners/
http://blog.equifax.com/small-business/accepting-credit-cards-5-tips-for-small-business-owners/#commentsThu, 27 Jun 2013 11:16:15 +0000http://blog.equifax.com/?p=6230While cash is still the most widely used form of payment, debit and credit cards have become consumers’ preferred payment choice. Although some small businesses steadfastly remain cash-only operations, many small businesses are now accepting credit card payments in order to increase their bottom line and customer satisfaction.

Credit cards now have the second largest share of the retail point-of-sale market by purchase volume, just behind debit cards, and are expected to match the market share of debit cards by 2017, according to forecasts by Javelin Strategy & Research.

Before accepting plastic at your small business for point-of-sale transactions, consider taking these five steps:

1. Research different providers

You can apply for a merchant account directly through your business’s bank, but you might need to demonstrate a solid sales history in order to qualify.

If you’ve just started your small business and are trying to set up credit card services from the outset, you might consider working with an independent sales organization (ISO)—a third party that serves as an intermediary between your business and the merchant processor.

While setting up credit card services through an ISO can be convenient for a new company without a business history, the Small Business Administration reminds business owners to bear in mind that it can also be more costly.

2. Calculate fees

Before selecting a provider, consider doing a comparative analysis—and make sure you budget for all credit card service fees.

Merchant account fees will depend on the amount of risk attributed to your small business, but start-up costs typically range from $50 to $200, with monthly fees between $4 and $20, according to the U.S. Small Business Administration. Transaction fees, which your business pays every time it accepts a credit card, often range between $.05 and $.50.

In addition to these standard merchant account fees, it’s important to also note any extra monthly, annual, or per-transaction costs—like fees for activation, batch processing, service cancellation, or customer service—that might be tacked onto the agreement.

“It’s key for any small business to take the time to compare rates and fees and really read the fine print,” says Gwendolyn Wright, who runs a small business management company in San Francisco.

As a small business owner, you might want to pay extra attention to the monthly minimum fee established by account providers, especially if you anticipate a limited number of credit card transactions. If you don’t hit the monthly minimum, you generally have to pay the difference.

3. Assess processing fees for small transactions

While processing fees for each credit card purchase are generally low, they could make a dent in your profits if your business does many low-value transactions.

However, if you are currently invoicing your customers and experiencing fluctuations in cash flow, accepting credit cards could help you more quickly turn your sales into working capital. While you may wait up to 90 days to receive an invoice payment, credit cards funds are generally transferred to your bank account in less time.

Try to anticipate the number of charges your customers will make and the amount of each charge, but also consider how accepting credit cards might increase sales volume, customer satisfaction and impulse purchasing in the long run.

4. Compare leasing versus buying the equipment

Don’t overlook the start-up costs for setting up equipment, including the terminal used to swipe cards, which you can either lease or buy. There are many forms, including basic terminals, terminals with printers and wireless terminals. Prices vary from low monthly equipment lease charges for basic terminals, to several hundred dollars to buy the equipment. Consider shopping around the prices and services.

5. Evaluate mobile payment services

If your small business is tech savvy, you might look into mobile payment services, which offer a convenient point-of-sale payment option for consumers and merchants alike.

Mobile payment services allow consumers to pay for things using their mobile devices by linking them to payment sources, like credit cards. Small business owners can benefit from the straightforward technology and pricing model.

With some mobile payment providers, business owners just need to plug a device into their smartphone or tablet headphone jack and download an accompanying application. Pricing is often either based on a monthly rate or charged per swipe, and the lack of additional fees can reduce transaction costs.

The mobile point of sale payment market is expected to grow in the coming years, with Javelin Strategy & Research forecasting it to hit $1.4 billion in 2017, up from $365 million in 2012.

No matter what merchant service provider you choose, make sure you fully understand the costs associated with taking debit and credit cards for point-of-sale transactions. You may want to discuss the costs and benefits with your accountant, to ensure you’re clear on all the costs and taking the right step for your business.

Joslin Woods is a researcher, writer, and Web producer at Think Glink Publishing, with a background in print and digital media. Previously, Joslin worked as a news reporter for the international news agency Agence France-Presse and as a freelance reporter for the Sun-Times News Group. She is a graduate of Vanderbilt University and Northwestern University, where she received a master’s degree in journalism.